What did Eagle Farmers and Herdsmen do wrong from the market value of 30 billion to the termination of listing?

category:Finance
 What did Eagle Farmers and Herdsmen do wrong from the market value of 30 billion to the termination of listing?


A farmer and herdsman close to the chicken Eagle told reporters that the biggest problem of chicken Eagle farming and herdsman is the family management. The stall is too big to keep up with the management of purchase, resulting in the problem of capital turnover and gradually thunderstorm.

On August 22, the reporter dialed Hou Jianfangs telephone, which had used mobile phone to call business, but the phone was not connected. The reporter sent the interview outline to Hou Wuqun, Vice Chairman of Eagle Farming and Animal Husbandry, and no reply was received as of the time of publication.

Why can pigs starve to death?

Eagle Farming and Animal Husbandry was established in 1988. Its core business includes pig farming, food trade and Internet. When Eagle Farming and Animal Husbandry was listed on the Shenzhen Stock Exchange in September 2010, it was the first small and medium-sized board listed company in China with pig farming and marketing as its main industry. In 2010, the total income of chick hawk farming and animal husbandry was 680 million yuan, and the net profit was 430 million yuan.

The crisis of Eagle farming and animal husbandry began in the second half of 2018. In June, the market value of the media published an article questioning the authenticity of the data disclosed in the annual reports of Eagle Farming and Animal Husbandry on suspicion of serious financial fraud, including the companys available financial assets and corresponding investment returns, accounting subjects related to non-current assets, and questioning the rationality and authenticity of the companys investment returns.

Farmers and herdsmen involved in the financial scandal have been experiencing credit rating downgrading, a sharp decline in cash flow from business activities, tight cash turnover and external guarantee risk. Especially in 2019, the debt concentration expires, which makes the farmers and herdsmen face greater short-term debt repayment pressure.

The $800 million Eagle Debt matured on June 26, 2019. In November 2018, the Eagle Farming and Animal Husbandry Bulletin said that 18 Eagle Farming and Animal Husbandry SCP001 could not be paid in full and on time, which constituted a substantial breach of contract. The bond issuance period is 270 days and the total amount of principal and interest payable is 528 million yuan. Soon after, the announcement said that the agreement with some creditors would pay the principal and interest through products such as company ham and eco-meat gift box.

Close to the eagles, farmers and herd reporters told reporters that the death of pigs is related to the pattern of farming and raising pigs by Eagles. Eagle farming and animal husbandry provide meat piglets to farmers. When the piglets reach a certain standard, the farmers then sell them to Eagle farming and animal husbandry. In this process, the eagle farming and animal husbandry provide feed and pay the farmersfees. When the eagles farming and animal husbandry funds are too tight to buy pig feed and do not pay for maintenance, the farmers pigs will starve to death.

* ST Eagle also said in the announcement that more than 70% of the cost of pig breeding is feed and medicine. In view of the shortage of funds in the past two years, the timely payment of feed, medicine and other related suppliers has a greater impact on the suppliers construction. The annual report of Eagle Farming and Animal Husbandry in 2018 shows a loss of 4.1 billion yuan.

The main reason for the shortage of funds is the eagle farming and animal husbandrys large-scale expansion and acquisition.

According to the statistics and inquiries of the reporter through wind, since 2012, the company has carried out 16 mergers and acquisitions, including Taiyuan Guarantee, Jeff E-commerce, Zhengzhou Vegetable, Dongyuan Food and other company targets, involving the industry of diversified financial services, regional banks, investigation and consulting services, dealers and special financial services, a total of 65.8. Among them, there are completed mergers and acquisitions and ongoing transactions.

According to the Eagle Farming and Animal Husbandry Announcement, owing to the large scale of investment in the past few years and the high debt ratio, combined with the industry recession, financial deleveraging and other factors, the Eagle Farming and Animal Husbandry Fund Chain has been in trouble.

Hou Family in Eagle Farming and Animal Husbandry

Among the 16 mergers and acquisitions of Eagle Farming and Animal Husbandry, Hou Geting, son of Hou Jianfang, chairman of Eagle Farming and Animal Husbandry Board, was the target company, namely Omega (Shanghai) Network Technology Co., Ltd. The deal was explained in the Eagle Farming and Animal Husbandry Annual Report 2017. Weekend Technologies, a subsidiary of Eagle Farming and Animal Husbandry Holdings, transferred 36% of its holding subsidiary, Omaga, to Hou Geting for no more than 27 million yuan. After the transfer, the ownership of Omaga by Weekend Technologies dropped to 15%, and Omaga will no longer be included in the public. Scope of consolidated statements.

OMG official website said that the club was founded in Chengdu in 2012. It has the Hero League Branch, Watch Pioneer Branch, FIFA Branch and so on. At the beginning, it focused on the project of Hero League. In that year, it began to compete in the domestic league and won the first global invitation championship of Jedi Survival in 2018. In April 2017, OMG Club ranked 10th with brand value of 9.53 million yuan and IG Club founded by Wang Sicong ranked 2nd with 13.97 million yuan in the China Electric Competition Club Brand Value List published by Sports Weekly.

The reporter inquired about Kaixinbao and learned that the major shareholder of Omega is Hou Geting.

Hou Jianfang once said in an interview with the media, I invested in my children, and finally made money, because he had a high rate of return on investment there. We have invested more than one billion yuan in the fund. Our listed company has invested 2.55 million yuan in total and earned more than 40 million yuan.

In March 2016, the Eagle Farming and Animal Husbandry Announcement and Shanghai Jingyuan Investment Management Co., Ltd. jointly set up an electronic competitive industry investment fund with a total scale not exceeding 505 million yuan, of which the company subscribed 500 million yuan as a limited partner.

The Hou family also invests in and manages many subsidiaries. For example, Hou Jianye is also a shareholder of Jilin Eagle Agriculture and Animal Husbandry Co., Ltd. and Hou Wuqun is a shareholder of Kaifeng Eagle Meat Processing Co., Ltd.

An Eagle farmer and herdsman who has quit his job told reporters that the Hou familys management level is uneven, some relatives do not know how to manage and have no experience are also placed in management posts, which is more inconvenient to work.

Termination of listing

Hou Jianfang has made many public statements saying that enterprises are saving themselves.

On July 29, * ST Eagle responded to the Shenzhen Stock Exchanges letter of concern, noting that due to various factors, cash flow of * ST Eagle is tight, and loans, goods and other payments can not be repaid on time. In response to the current situation, * ST Eagle has adopted a variety of ways to solve the debt crisis, including but not limited to: paying creditorsprincipal and interest with company inventories, currently delivering 137 million yuan of goods; carrying out debt restructuring, has signed framework agreements with some creditors, has not yet signed formal agreements, has not made substantial progress; will the company Department If fixed assets such as pigsty are leased to third parties, the liquidity of the company can be supplemented in the short term. The company signed a cooperation agreement with suppliers to carry out pig farming business, which is a new attempt to solve the companys debt program. As for the progress of self-rescue, no reply had been received from Eagle farming and animal husbandry as of the time of publication. Farming and animal husbandry triggers delisting on the condition that the daily closing price of stocks for 20 consecutive trading days is lower than the par value of stocks (1 yuan). Capital figures said that for poor performance stocks and problem stocks, face value delisting mechanism will speed up the liquidation of low-quality enterprises in the market. Eagle Farming and Animal Husbandry is not the first stock to be delisted because the daily closing price of the stock is lower than the par value of the stock for 20 consecutive trading days. Previously, Sinohong (that is, Sinohong Stock) delisted because of this requirement and terminated its listing after the end of trading on December 27, 2018. The Shenzhen Stock Exchange will delist its shares. Source: Author of Economic Observation Network: Zheng Weixin Responsible Editor: Zhong Qiming_NF5619

On July 29, * ST Eagle responded to the Shenzhen Stock Exchanges letter of concern, noting that due to various factors, cash flow of * ST Eagle is tight, and loans, goods and other payments can not be repaid on time. In response to the current situation, * ST Eagle has adopted a variety of ways to solve the debt crisis, including but not limited to: paying creditorsprincipal and interest with company inventories, currently delivering 137 million yuan of goods; carrying out debt restructuring, has signed framework agreements with some creditors, has not yet signed formal agreements, has not made substantial progress; will the company Department If fixed assets such as pigsty are leased to third parties, the liquidity of the company can be supplemented in the short term. The company signed a cooperation agreement with suppliers to carry out pig farming business, which is a new attempt to solve the companys debt program.

As for the progress of self-rescue, no reply had been received from Eagle farming and animal husbandry as of the time of publication.